Michael Newell, CEO of Ener-G-Roters, talks about being the recipient of an Angel investment during a news conference on Tuesday, Nov. 15, 2011, at Ener-G-Rotors in Rotterdam, N.Y. (Cindy Schultz / Times Union archive) less

Michael Newell, CEO of Ener-G-Roters, talks about being the recipient of an Angel investment during a news conference on Tuesday, Nov. 15, 2011, at Ener-G-Rotors in Rotterdam, N.Y. (Cindy Schultz / Times Union ... more

National Grid also is covering the expenses for electrical system upgrades at the company's Rotterdam building, including metering needed for putting power back onto the electrical grid from its machines.

The two grants follow Ener-G-Rotors' participation last month in the Department of Energy ARPA-E Technology Showcase just outside Washington. ARPA-E is the federal agency involved in supporting cutting-edge research projects. Those who get invited get to tell their story to academics, business executives and government leaders.

"It was great," Ener-G-Rotors CEO Michael Newell said. "We made some great contacts."

The Ener-G-Rotors machine, known as the GEN4, costs about $90,000. But the company says it can pay for itself within a two-year period since it can generate electricity at a cost of about 1.5 cents per kilowatt hour. That is nearly like getting free power using something that normally would be released into the air. The GEN4 is capable of handling between 30 kilowatts and 60 kilowatts of electricity production after the company had initially focused on a smaller five-kilowatt system.

The Ener-G-Rotors system can create enough electricity to power 50 homes, as long as the factory or industrial facility using it is producing enough waste heat.

NYERDA has been interested in Ener-G-Rotors' potential and previously has given the company $2.5 million.

Newell said Monday that the company has nine full-time employees. He said that once all the demonstration projects are up and running by the end of the year, he expects that commercial sales will start in 2014.